Strategy to Increase Scotts Miracle-Gro Yield from 4.7% to 19.1% Through Options Trading
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 28 2025
0mins
Should l Buy SMG?
Source: NASDAQ.COM
Dividend Predictability: Dividend amounts for companies like Scotts Miracle-Gro Co are influenced by profitability and historical trends, making future dividends uncertain despite a current annualized yield of 4.7%.
Options Trading Insights: The stock's historical volatility and trading history can inform decisions on selling covered calls, particularly at the $62.50 strike price, balancing potential rewards against risks.
Current Market Activity: On a recent trading day, S&P 500 options showed a put:call ratio of 0.48, indicating a preference for call options among traders compared to the long-term median of 0.65.
Author's Perspective: The opinions expressed in the article reflect the author's views and do not necessarily align with those of Nasdaq, Inc.
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Analyst Views on SMG
Wall Street analysts forecast SMG stock price to fall
5 Analyst Rating
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 66.770
Low
51.37
Averages
64.09
High
74.00
Current: 66.770
Low
51.37
Averages
64.09
High
74.00
About SMG
The Scotts Miracle-Gro Company is a manufacturer and marketer of branded consumer products for lawn and garden care. The Company's segments include United States (U.S.) Consumer, Hawthorne and Other. The U.S. Consumer segment consists of its consumer lawn and garden business in the United States. Its consumer lawn and garden brands include Scotts and Turf Builder lawn fertilizer and Scotts grass seed products; Miracle-Gro soil, plant food and gardening products; Ortho herbicide and pesticide products, and Tomcat rodent control and animal repellent products. The Hawthorne segment is engaged in providing nutrients, lighting and other materials used for indoor and hydroponic gardening in North America. Its key brands include General Hydroponics, Gavita, Botanicare, Agrolux, Gro Pro, Mother Earth, Grower’s Edge, HydroLogic Purification System and CYCO. The Other segment primarily consists of its consumer lawn and garden business in Canada.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Vireo Growth Acquires Hawthorne Gardening Subsidiary
- Acquisition Expansion Plan: Vireo Growth has agreed to acquire the Hawthorne Gardening subsidiary from Scotts Miracle-Gro for an undisclosed amount of shares, expected to close in Q1 or Q2 of 2026, which will enhance its vertical integration in North America, reduce supply chain risks, and improve product quality.
- Strong Financial Performance: For the first nine months of the year, Vireo reported revenue of $164 million, a 121% year-over-year increase, with adjusted EBITDA of $45 million, up 145%, demonstrating the company's robust financial strength and expansion potential in a competitive market.
- Risks of Rapid Growth: Vireo's rapid expansion from 16 to 166 dispensaries raises concerns among investors, particularly with a debt level of $60.8 million, which could lead to integration challenges and quality control issues as the company navigates its aggressive acquisition strategy.
- Market Volatility: Currently trading around $0.55 per share, Vireo's stock reflects market uncertainty regarding its future; while acquisitions may offer long-term growth opportunities, the high short-term risks suggest that investors should approach with caution.
See More
Dividend Stocks Gain Favor Amid Market Turbulence
- Investor Shift to Dividends: Amid market turbulence and uncertainty, many investors are turning to dividend-yielding stocks, which typically feature high free cash flows and substantial payouts to shareholders, thereby enhancing investor confidence and market stability.
- Analyst Ratings Overview: Benzinga offers insights into the latest analyst takes on high-yield stocks, allowing investors to visit the Analyst Stock Ratings page for informed decision-making, which is crucial during volatile market conditions.
- High-Yield Stocks in Materials: Within the materials sector, Kronos Worldwide, Inc. (NYSE:KRO), Graphic Packaging Holding Co (NYSE:GPK), and Scotts Miracle-Gro Co (NYSE:SMG) are highlighted as attractive high-yield stocks, indicating significant investment potential in this industry.
- Analyst Accuracy Metrics: Benzinga's database enables traders to sort ratings by analyst accuracy, providing investors with a more reliable basis for decision-making, particularly when selecting high-dividend stocks in a fluctuating market.
See More
Scotts Miracle-Gro Reports Wider Q1 Loss, Maintains Full-Year Growth Targets
- Financial Decline: Scotts Miracle-Gro reported a net loss of $125 million in Q1 2026, translating to a loss of $2.16 per share, which is significantly worse than the $69.5 million loss reported in the same quarter last year, indicating revenue weakness during the typical slow season.
- Divestiture of Cannabis Business: The company classified its Hawthorne Gardening cannabis unit as discontinued operations, reporting losses of $77.2 million, sharply up from $3.4 million a year earlier, highlighting increased volatility in this segment.
- Sales Drop: Quarterly sales fell by 3% to $354.4 million, missing the consensus estimate of $358 million, suggesting challenges in a competitive market environment.
- Stable Outlook: Despite short-term challenges, Scotts reaffirmed its fiscal year outlook ending September 2026, projecting adjusted earnings from continuing operations between $4.15 and $4.35 per share, demonstrating confidence in future growth.
See More
Scotts Miracle-Gro Announces Divestiture Plan and Share Repurchase Program
- Divestiture Plan: Scotts Miracle-Gro is in advanced discussions to sell its Hawthorne subsidiary to Vireo Growth, Inc., with an expected closing in the fiscal second quarter of 2026, which will provide immediate margin-accretive benefits and further optimize its business structure.
- Share Repurchase Program: The Board of Directors has approved a share repurchase program of up to $500 million, expected to commence in late 2026, aimed at enhancing shareholder returns while supporting the company's financial priorities through strategic capital allocation.
- Financial Performance: For the first quarter of fiscal 2026, U.S. Consumer net sales reached $328.5 million with a gross margin rate of 25.0%, indicating improved competitiveness and profitability, despite a net loss of $0.83 per share, which shows year-over-year improvement.
- Future Outlook: The company reaffirms its fiscal 2026 guidance, projecting low single-digit growth in U.S. Consumer net sales and non-GAAP adjusted net income per share between $4.15 and $4.35, reflecting confidence in the long-term growth prospects of its core business.
See More
Scotts Miracle-Gro Q1 Earnings Beat Expectations
- Earnings Beat: Scotts Miracle-Gro reported a Q1 non-GAAP EPS of -$0.77, beating expectations by $0.23, indicating resilience despite challenges in the market.
- Revenue Decline: The company generated $354.4 million in revenue, a 3.3% year-over-year decrease, missing estimates and reflecting intensified market competition and weak consumer demand.
- Margin Improvement: The non-GAAP adjusted gross margin rate improved to 25.4%, up 90 basis points from the previous year, showcasing effective cost management and pricing strategies that enhance profitability.
- Share Repurchase Program: The Board approved a $500 million share repurchase program aimed at boosting shareholder value and market confidence, which is expected to have a positive impact on the stock price.
See More
Scotts Miracle-Gro to Announce Q1 Earnings on January 28
- Earnings Announcement: Scotts Miracle-Gro is set to release its Q1 2023 earnings on January 28 before market open, with consensus EPS estimate at -$1.00, reflecting a 12.4% year-over-year decline, and revenue estimate at $357.62 million, down 14.2% year-over-year.
- Historical Performance: Over the past two years, Scotts Miracle-Gro has beaten EPS estimates 100% of the time and revenue estimates 50% of the time, indicating a degree of financial stability in its performance.
- Estimate Adjustments: In the last three months, there have been no upward revisions to EPS estimates, with five downward revisions, and similarly, revenue estimates have seen five downward adjustments, suggesting market caution regarding the company's future performance.
- Strategic Transformation Goals: Scotts Miracle-Gro aims for an EPS target of $4.15 to $4.35 by 2026, indicating a strategic pivot towards branded growth and AI-driven innovation to enhance its competitive position in the market.
See More
Vireo Growth Acquires Hawthorne Gardening Subsidiary
- Acquisition Expansion Plan: Vireo Growth has agreed to acquire the Hawthorne Gardening subsidiary from Scotts Miracle-Gro for an undisclosed amount of shares, expected to close in Q1 or Q2 of 2026, which will enhance its vertical integration in North America, reduce supply chain risks, and improve product quality.
- Strong Financial Performance: For the first nine months of the year, Vireo reported revenue of $164 million, a 121% year-over-year increase, with adjusted EBITDA of $45 million, up 145%, demonstrating the company's robust financial strength and expansion potential in a competitive market.
- Risks of Rapid Growth: Vireo's rapid expansion from 16 to 166 dispensaries raises concerns among investors, particularly with a debt level of $60.8 million, which could lead to integration challenges and quality control issues as the company navigates its aggressive acquisition strategy.
- Market Volatility: Currently trading around $0.55 per share, Vireo's stock reflects market uncertainty regarding its future; while acquisitions may offer long-term growth opportunities, the high short-term risks suggest that investors should approach with caution.
See More
Dividend Stocks Gain Favor Amid Market Turbulence
- Investor Shift to Dividends: Amid market turbulence and uncertainty, many investors are turning to dividend-yielding stocks, which typically feature high free cash flows and substantial payouts to shareholders, thereby enhancing investor confidence and market stability.
- Analyst Ratings Overview: Benzinga offers insights into the latest analyst takes on high-yield stocks, allowing investors to visit the Analyst Stock Ratings page for informed decision-making, which is crucial during volatile market conditions.
- High-Yield Stocks in Materials: Within the materials sector, Kronos Worldwide, Inc. (NYSE:KRO), Graphic Packaging Holding Co (NYSE:GPK), and Scotts Miracle-Gro Co (NYSE:SMG) are highlighted as attractive high-yield stocks, indicating significant investment potential in this industry.
- Analyst Accuracy Metrics: Benzinga's database enables traders to sort ratings by analyst accuracy, providing investors with a more reliable basis for decision-making, particularly when selecting high-dividend stocks in a fluctuating market.
See More
Scotts Miracle-Gro Reports Wider Q1 Loss, Maintains Full-Year Growth Targets
- Financial Decline: Scotts Miracle-Gro reported a net loss of $125 million in Q1 2026, translating to a loss of $2.16 per share, which is significantly worse than the $69.5 million loss reported in the same quarter last year, indicating revenue weakness during the typical slow season.
- Divestiture of Cannabis Business: The company classified its Hawthorne Gardening cannabis unit as discontinued operations, reporting losses of $77.2 million, sharply up from $3.4 million a year earlier, highlighting increased volatility in this segment.
- Sales Drop: Quarterly sales fell by 3% to $354.4 million, missing the consensus estimate of $358 million, suggesting challenges in a competitive market environment.
- Stable Outlook: Despite short-term challenges, Scotts reaffirmed its fiscal year outlook ending September 2026, projecting adjusted earnings from continuing operations between $4.15 and $4.35 per share, demonstrating confidence in future growth.
See More
Scotts Miracle-Gro Announces Divestiture Plan and Share Repurchase Program
- Divestiture Plan: Scotts Miracle-Gro is in advanced discussions to sell its Hawthorne subsidiary to Vireo Growth, Inc., with an expected closing in the fiscal second quarter of 2026, which will provide immediate margin-accretive benefits and further optimize its business structure.
- Share Repurchase Program: The Board of Directors has approved a share repurchase program of up to $500 million, expected to commence in late 2026, aimed at enhancing shareholder returns while supporting the company's financial priorities through strategic capital allocation.
- Financial Performance: For the first quarter of fiscal 2026, U.S. Consumer net sales reached $328.5 million with a gross margin rate of 25.0%, indicating improved competitiveness and profitability, despite a net loss of $0.83 per share, which shows year-over-year improvement.
- Future Outlook: The company reaffirms its fiscal 2026 guidance, projecting low single-digit growth in U.S. Consumer net sales and non-GAAP adjusted net income per share between $4.15 and $4.35, reflecting confidence in the long-term growth prospects of its core business.
See More
Scotts Miracle-Gro Q1 Earnings Beat Expectations
- Earnings Beat: Scotts Miracle-Gro reported a Q1 non-GAAP EPS of -$0.77, beating expectations by $0.23, indicating resilience despite challenges in the market.
- Revenue Decline: The company generated $354.4 million in revenue, a 3.3% year-over-year decrease, missing estimates and reflecting intensified market competition and weak consumer demand.
- Margin Improvement: The non-GAAP adjusted gross margin rate improved to 25.4%, up 90 basis points from the previous year, showcasing effective cost management and pricing strategies that enhance profitability.
- Share Repurchase Program: The Board approved a $500 million share repurchase program aimed at boosting shareholder value and market confidence, which is expected to have a positive impact on the stock price.
See More
Scotts Miracle-Gro to Announce Q1 Earnings on January 28
- Earnings Announcement: Scotts Miracle-Gro is set to release its Q1 2023 earnings on January 28 before market open, with consensus EPS estimate at -$1.00, reflecting a 12.4% year-over-year decline, and revenue estimate at $357.62 million, down 14.2% year-over-year.
- Historical Performance: Over the past two years, Scotts Miracle-Gro has beaten EPS estimates 100% of the time and revenue estimates 50% of the time, indicating a degree of financial stability in its performance.
- Estimate Adjustments: In the last three months, there have been no upward revisions to EPS estimates, with five downward revisions, and similarly, revenue estimates have seen five downward adjustments, suggesting market caution regarding the company's future performance.
- Strategic Transformation Goals: Scotts Miracle-Gro aims for an EPS target of $4.15 to $4.35 by 2026, indicating a strategic pivot towards branded growth and AI-driven innovation to enhance its competitive position in the market.
See More
